Dealing With Debt

What should you do if you have credit problems? Consumer advocates and regulators offer these tips:

* Contact the credit bureau to make sure your credit report is accurate. If you have been denied credit within the previous 30 days, a copy of the report is free. (TRW Information Services will provide one free report each year to any consumer who requests it. For more information, call [800] 392-1122.)

* Send the agency a written explanation of what you consider to be inaccuracies in the report. After investigating, the agency will delete any information that does not belong on your record.

* Ask the bureau to include your version of the dispute in your file in the event the investigation does not resolve the matter. Your explanation is limited to 100 words.

* Work with your creditors. Try to negotiate a reasonable payment plan. Ask creditors if they will waive late fees or offer a lower interest rate.

* Contact a credit counselor. Legitimate counseling services can sometimes help you consolidate your debts or work out a payment plan. In Los Angeles, Consumer Credit Counseling Service, a nonprofit operation that helps consumers work out budgets and payment plans, can be reached at (213) 808-4222. Its main office can set up appointments at any one of the organization’s 14 satellite offices in Southern California.

* Work your way out of debt and past problems will become less important to creditors with the passage of time. Most items will be removed in seven years. (Bankruptcies stay on your record for 10 years.)

* Avoid firms promising quick fixes for credit problems. There is little or nothing they can do that you cannot do for yourself.